This year I started a Roth IRA thinking the contribution would be tax deductable. Now that tax season is here, I've read that it isn't. So, now I'm trying to figure out what the point of having a Roth IRA is. The only difference I see between a Roth IRA and say...a regular mutual fund, are just more restrictions on the IRA. I know I must be missing something somewhere. I've read several articles throughout your site, and your message board.....I just don't see an advantage. I would greatly appreciate any clarifcation that you can give me. Thanks!

phyburoptik: The payoff with the Roth/IRA is in the end... NO TAX DUE on withdrawn funds! While you sacrifice a deduction when you contribute, you get a great reward. Ask your provider to send you more info on the Roth - it should boost your attitude! PP

<<This year I started a Roth IRA thinking the contribution would be tax deductable. Now that tax season is here, I've read that it isn't. So, now I'm trying to figure out what the point of having a Roth IRA is. The only difference I see between a Roth IRA and say...a regular mutual fund, are just more restrictions on the IRA. I know I must be missing something somewhere. I've read several articles throughout your site, and your message board.....I just don't see an advantage. I would greatly appreciate any clarifcation that you can give me. >>

each sort of account (Roth, trad.IRA, taxable, 401(k)) have their advantages and disadvantages...

advantages of Roth: since you pay tax on what goes in, you pay NO TAX on what comes out (unless, as some cynics suspect , Congress changes its "mind" before you get old enough. much less restrictions wrt. withdrawals that other tax-advantaged accounts. slightly less restriction on contributions than trad.Ira